Lifeloc Reports Second Quarter 2018 Results
WHEAT RIDGE, Colo.--(BUSINESS WIRE)--Aug 10, 2018--Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol testing devices, has announced financial results for the second quarter ended June 30, 2018.
Second Quarter Financial Highlights
We posted quarterly net revenue of $2.13 million resulting in quarterly net income after taxes of $78 thousand, or $0.03 per diluted share. These results compare to net revenue of $2.05 million for quarterly net income of $68 thousand, or $0.03 per diluted share, in the second quarter of 2017. Revenue for the quarter grew 4% versus the second quarter last year and for the first half grew 7% versus the first half last year. Gross margin was 47% as compared to 49% in the second quarter of 2017.
Gross margin on net revenue was lower in the current quarter versus the same quarter last year primarily due to lower royalties received and start up and depreciation costs of the newly implemented enterprise resource planning (ERP) software system.
“We are pleased to report some modest growth, even without any new product introduction during this quarter,” said President and CEO Dr. Wayne Willkomm. “We have engaged some new sales distribution channels both domestically and internationally, which are starting to yield results. This is our third consecutive quarter of year-over-year growth, and we are hoping that with upcoming product introductions there will be many more quarters showing growth.”
Research and development is focused directly on our vision of being the leader in professional breath alcohol testing devices and expanding that leadership to alcohol monitoring and real time drug testing. This drives product development to large projects intended to have a significant impact on our business. Our commitment to market leadership is demonstrated by the continued strong investment of more than 13% of revenue for the first two quarters into research and development. Lifeloc has focused product development on three specific fronts.We are building a completely new breathalyzer with features that customers have demanded to further secure our market leading technology. We expect to launch this first model later this year. We will build our alcohol monitoring business utilizing the Remote Alcohol Detection and Recognition or R.A.D.A.R.® device product line acquired last year. R.A.D.A.R. devices are alcohol monitoring units with biometrics which can be used as a tool to supervise offenders as an alternative to incarceration. The upgraded R.A.D.A.R. device – with a more robust design and better communications – is also expected to launch later this year. Work continues on our development of technology for the real-time, quantitative analysis for a panel of drugs including THC, methamphetamine, cocaine, heroin, and several other drugs of abuse, utilizing the SpinDx™ technology exclusively licensed by us from Sandia National Laboratory, as well as on the closely related THC breathalyzer. The ability of our technology to detect delta-9-THC (the psychoactive agent) down to a concentration of 5 nanograms per milliliter has been demonstrated in our laboratories. More work is needed to convert this technology into a simple-to-operate device suitable for roadside testing.
As part of the preparation for the product launches, we have invested in our information infrastructure with a new ERP system. “This new tool will be a critical part of effectively managing an increasingly broad product offering and global supply chain,” commented Dr. Willkomm. “And this system has already driven ecommerce revenue higher through a more robust and versatile customer interface.”
Lifeloc’s vision will be presented by Dr. Willkomm at the Sidoti Emerging Growth Conference in New York on September 27, 2018.
About Lifeloc Technologies
Lifeloc Technologies, Inc. (OTC: LCTC) is a trusted U.S. manufacturer of evidential breath alcohol testers and related training and supplies for Workplace, Law Enforcement, Corrections and International customers. Lifeloc stock trades over-the-counter under the symbol LCTC. We are a fully reporting Company with our SEC filings available on our web site, www.lifeloc.com.
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements expressed or implied in this press release, including statements about our strategies, expectations about new and existing products, market demand, acceptance of new and existing products, technologies and opportunities, market size and growth, and return on investments in products and market, are based on information available to us on the date of this document, and we assume no obligation to update such forward-looking statements. Investors are strongly encouraged to review the section titled “Risk Factors” in our SEC filings.
R.A.D.A.R.® is a registered trademark of Lifeloc Technologies, Inc.
SpinDx™ is a trademark of Sandia Corporation.
This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20180810005301/en.